Crypto fund manager Bitwise Asset Management has firmly stated that it has no connection with the now-defunct technology company Bitwise Industries. This statement comes as the US Securities and Exchange Commission (SEC) conducts an investigation into Bitwise Industries, accusing the company and its former co-CEOs of misleading investors about its financial status.
The SEC has levied charges of wire fraud against Bitwise Industries, alleging that it amassed $100 million from investors despite having a failing business model. The regulators also claim that the defendants falsified the company’s bank account, reporting $23.4 million when there was only $325,100.
These allegations have cast doubt on Bitwise Asset Management, which shares a similar name with the troubled tech firm. Some social media posts even wrongly implied that Bitwise Asset Management was also under SEC scrutiny.
“Bitwise Asset Management has no links with Bitwise Industries,” clarified the crypto firm in response to the confusion. It emphasized that the two entities are completely separate.
Meanwhile, Bitwise is actively pursuing the approval of a Bitcoin Exchange-Traded Fund (ETF) and has made amendments to its application to address the SEC’s concerns. The updated application provides a compelling new dimension to Bitwise’s overall goal of launching a Bitcoin ETF. In June, the firm also re-filed its application for a spot Bitcoin ETF, sparking a wave of ETF applications from other companies, including BlackRock, a prominent asset manager.
Interestingly, Bitwise surprised the crypto community by withdrawing its “Bitcoin and Ethereum Market Cap Strategy ETF” application in August. This move was unexpected given the company’s commitment to seeking ETF approval.
